• by David Kaplan , March 22, 2005

The Federal Communications Commission has again backed off in its attempts to force cable operators to stop providing integrated cable set-top boxes, as the regulatory agency has decided to delay the implementation of a ban on such set-top boxes for an additional year.

In a statement, the FCC said the ban is intended to stimulate the market for digital cable-ready DTV sets that use so-called "CableCARDs" to provide premium cable programming and services.

But the cable industry has balked at the ban, arguing that the deadline doesn't provide enough time to develop the downloadable security software needed to protect such services. Chip makers, such as Intel and AMD, have requested keeping the 2006 deadline, while Microsoft--which is said to likely benefit from the development of security solutions--sided with the cable industry. The FCC has given the cable industry until Dec. 1, 2005 to report whether or not development and deployment of downloadable security is feasible, and to provide a timeline for said deployment and a draft of licensing terms. In addition, starting August 1, 2005, the cable industry must submit bimonthly progress reports to the FCC on negotiations for a two-way plug and play agreement. Furthermore, the six largest cable operators must file status reports on CableCARD deployment every three months.

The National Cable and Telecommunications Association said it was pleased by the extension.

"In the additional time provided by this order, the cable industry will investigate the feasibility of a downloadable security solution as requested by the Commission, plus we will demonstrate that cable operators are making CableCARDs work with Digital Cable Ready devices," said Brian Dietz, and NCTA spokesman. More than 31,000 CableCARDs have already been provided by cable operators to cable customers, he added.